More details on Thai taxation of overseas income

Tax calculation

The Thai Revenue Department has in a press release explained more about the taxation of income overseas which will affect both some foreigners and some Thai people.

The basic idea is, that when money is transferred into Thailand it should be taxed in Thailand if it is income. If the income has been received in another country and later within the same tax year is being transferred to the taxpayer’s account in Thailand it must be taxed in Thailand. If Thailand has a double tax agreement with the country where the money comes from, the tax paid in that foreign country can be deducted in Thailand according to the rules in the double tax agreement.

According to Mr. Winit Wisetsuvarnabhumi  Deputy Director General and Spokesperson of the Revenue Department, the new rule basically follows the many international tax treaties, which Thailands is a signatory to. The implementation follows the development of information technology which makes it easier now for Thailand to live up to these agreements.

The Revenue Department Order will soon be followed up with administrative directives to the local revenue departments around the country, explaining how the new order must be administered, what kind of documentation is needed, etc.  Transfer of savings from another country is e.g. an area that needs clarification. Savings is not classified as income – but a part of it may be identified as interest income that must be taxed in Thailand regardless of the year it was earned when transferred into Thailand.

If you want to talk to your auditor, the new rule is in the Revenue Department Order No. P.363/2017 regarding payment of income tax according to Section 47, paragraph two of the Revenue Code, dated September 15, 2023,


About Gregers Møller

Editor-in-Chief • ScandAsia Publishing Co., Ltd. • Bangkok, Thailand

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8 Comments on “More details on Thai taxation of overseas income”

  1. There is no error. Tax is deducted in the country where income originated, but then those taxes paid act as a credit to offset taxes in Thailand. So if you paid $1000 in US tax, then you get credit against Thai taxes. But if Thai tax is more, you pay the difference in Thai tax.

  2. I’ve a friend from the UK who’s married to a Thai who has recently become a British Citizen. She’s been taxed both in the UK and Thailand

  3. Paragraph two final sentence is just all wrong. If a country has a double tax agreement, (of which Thailand has 61) the tax is deducted in the original country. Not the country where you are living in this scenario Thailand. This is basic knowledge and really this is a pretty serious mistake here.

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